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Full text of "ANNUAL REPORT - ONTARIO ENERGY BOARD (fiscal year ended March 31, 1981)"




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Ontario 



Publications 



Ontario 
Energy 
Board 



DEPOSITORY LIBRARY MATERIAL 



ANNUAL REPORT 
Fiscal Year Ended March 31, 1981 



ANNUAL REPORT 
Fiscal Year Ended March 31, 1981 



V Li. 



■J? : ?h J 

Ontario 



cOSJs« "'^s 



Energy 
Ontario 



Ministry 

of 

Energy 



Queen's Park 
Toronto, Ontario 
M7A 2B7 
416/965-2041 
Telex 06217880 



May 22nd f 1981 



TO THE HONOURABLE JOHN BLACK AIRD 
O.C., Q.C., B.A., LL.D. 

Lieutenant Governor of the Province of Ontario 



MAY IT PLEASE YOUR HONOUR: 

I take pleasure in submitting the 
Twenty First Annual Report for the Ontario Energy 
Board for the fiscal year ended March 31st, 1981, 



Respectfully submitted, * 



Robert Welch, 
Minister of Energy, 




wir.j..k, ^^ B323BB 

Ontario 



Ontario 416/963-0815 9th Floor 

P 14 Carlton Street 

energy Toronto Ontario 

Board msbu2 



May 15, 1981 



Honourable Robert Welch, Q.C. 
Minister of Energy 
Queen's Park 
Toronto, Ontario 
M7A 2B7 



Dear Mr. Welch: 



I have the honour to present herewith the 
Annual Report of the Ontario Energy Board for the 
fiscal year ended March 31, 1981. 

Respectfully submitted, 



Robert H. Clendining 
Chairman 



TWENTY FIRST ANNUAL REPORT 



OF THE 



ONTARIO ENERGY BOARD 



Fiscal Year Ended March 31, 1981 



CONTENTS 



INTRODUCTION 



Page 



Role of the Board 1 

Major Activities of the Board 2 



REGULATORY HEARINGS 3 

Natural Gas Rates 3 

The Consumers 1 Gas Company 5 

Inter-City Gas Corporation 6 

Natural Resource Gas Limited 7 

Northern and Central Gas 

Corporation Limited 7 

Tecumseh Gas Storage Limited 8 

Union Gas Limited 8 

Wellandport Gas Limited 10 

Pipeline Construction 11 

Pipeline Exemptions 12 

Gas Storage 13 

Certificates and Franchises 14 

Certificates 14 

Franchises 15 

Accounting Orders 18 

ADVISORY HEARINGS 18 

Ontario Hydro Bulk Power Rates 18 

Tecumseh Gas Storage Limited 19 



- l - 



Page 



OTHER MATTERS 20 

Hearing Procedures 20 

Ontario Pipeline Coordination Committee . . 22 

Pipeline Construction Guidelines 24 



COSTS OF ADMINISTRATION 2 5 



APPENDIX 'A' 

(i) Chart of Residential Rate Increases 

- Consumers' Gas Company 

(ii) Chart of Residential Rate Increases 

- Northern and Central Gas 

Corporation Limited 

(iii) Chart of Residential Rate Increases 

- Union Gas Limited 



APPENDIX 'B' 
Summary of Procedures before the Board 

APPENDIX 'C 
Board Personnel 



- ii - 



ONTARIO ENERGY BOARD 
ANNUAL REPORT 
Fiscal Year Ended March 31, 1981 

INTRODUCTION 

Role of the Board 

Energy regulation has been a fact of life in Ontario 
from the time the Provincial Legislature passed an Act in 
1907 aimed, in part, at preventing the wastage of natural 
gas. Later styled "The Natural Gas and Oil Wells Act", 
that piece of legislation marked the Province's early 
concern for the proper management of its energy resources 
-- a concern that has evolved, through The Natural Gas 
Act of 1918, The Natural Gas Conservation Act of 1921 and 
The Ontario Fuel Board Act of 1954. 

The Ontario Energy Board in its present form was 
established in 1960 as successor to the Ontario Fuel 
Board. Today the Board is involved in a broad spectrum 
of energy-related matters ranging from regulation of 
natural gas rates to municipal franchise approval, from 
hydrocarbon pipeline construction and concomitant 
environmental concerns to control of utility accounting 
procedures . 

Upon reference being made to it, the Board also acts 
in an advisory role to the Minister of Energy with regard 



- 2 - 

to Ontario Hydro, to the Minister of Natural Resources 
respecting certain oil and gas production concerns, and 
to the Lieutenant Governor in Council on other energy 
matters . 

The Board's regulatory decisions are based on the 
evidence presented at public hearings and on information 
within its specialized knowledge of which it may take 
notice. No natural gas utility operating in Ontario 
under the Board's jurisdiction can increase its rates, 
construct certain facilities or enter into franchise 
agreements with municipalities without first obtaining 
the approval of the Board through the public hearing 
process . 

The Board reports annually to the Minister of 
Energy . 

Major Activities of the Board 

With Ontario dependent upon Western Canada for 
approximately 98 percent of its natural gas needs, and 
with the national policy of increasing oil and gas prices 
towards world levels, applications for increased rates 
have again occupied the Board for the major part of its 
time, resulting in 34 separate decisions. These and 47 
other applications of various types, including a 
reference from the Minister of Energy with respect to 



- 3 - 



Ontario Hydro's bulk power rates, have required a total 
of 97 hearing days. Summaries of these matters follow, 
and a classified breakdown of all cases dealt with in the 
year appears as Appendix 'B' to this Report. 

In addition to matters dealt with by way of the 
public hearing process, the Board has been engaged in 
matters of an operational nature which are summarized 
under "Other Matters." The Board has continued its 
program of reviewing its hearing procedures with the 
objective of expediting the overall hearing process. 
Board staff has also been involved in the affairs of the 
Ontario Pipeline Coordination Committee and a revision to 
the guidelines relating to pipeline construction in the 
Province. 

REGULATORY HEARINGS 

Natural Gas Rates 

As part of its program to streamline the hearing 
process, the Board in the past year has taken a second 
look at the established practice of conducting major rate 
cases in two separate phases. The first phase has 
customarily dealt with the distributor's rate base 
(capital used in its operations) and revenue requirement 
(money the company needs to pay for gas purchased, to 
provide for operating expenses and depreciation and to 



- 4 - 



finance the capital used). The second phase has been to 
determine the rates to be paid by the various classes of 
customers in order to meet the revenue requirement so 
that the distributor may continue to maintain a 
reasonable quality of service to its customers. Each of 
these phases has in the past resulted in a separate 
decision with extensive written reasons summarizing the 
testimony and arguments of those who took part in the 
hearing, and the Board's rationale in arriving at its 
decision. 

During the past year the Board has begun to 
integrate these phases into a single-phase hearing with 
only one decision and the reasons therefor. This 
practice accelerates the regulatory process, which is 
especially important with the increasing frequency each 
distributor must come before the Board because of 
escalating gas costs and the state of the economy in 
general. 

During the fiscal year the Federal Government 
increased the Toronto city-gate price of gas (the price 
at which TransCanada PipeLines Limited delivers gas to 
southwestern and eastern Ontario) from $2.30 per standard 
thousand cubic feet ("Mcf") to $2.60 per Mcf on September 
1, 1980. In addition, effective November 1, 1980, the 
Federal Government levied a natural gas excise tax of 30$ 
per Mcf on gas purchased or produced by the distributors. 



- 5 - 



Upon application therefor, and following a public 
hearing, the Board permitted the gas distributors to 
increase their rates to pass on the effect of these cost 
increases . 

Following are the highlights of the other rates 
cases dealt with by the Board during the fiscal year. 

The Consumers ' Gas Company* 

Consumers' Gas distributes gas in parts of southern 
and eastern Ontario, including Toronto. It also operates 
under the names of Brockville Gas, Grimsby Gas, Ottawa 
Gas and Provincial Gas. 

As a result of the Board's Phase II decision 
effective April 4, 1980, Consumers' rates already in 
effect on an interim basis received minor structural 
revisions. Rate increases resulting from the February 1, 
1980, increase of 1 5<f: per Mcf in the Toronto city-gate 
price of gas were also effective on April 4, 1980. 

The Board extended the period of grace for late 
payment penalties from 10 to 16 days for residential and 
genral service customers, but ruled that the areas of 
security deposits and credit checks were outside its 
jurisdiction. 

* legal name: Hiram Walker-Consumers Home Ltd. 



- 6 - 



Just prior to the commencement of the fiscal year 
Consumers 1 filed a new main rates application. The 
matter was heard and decided in the fall of 1980, with 
written reasons to follow. The Board approved a rate of 1 *' 
return of 10.81 percent and rates which were expected to 
yield some $17,252,000 in additional revenue. Thi,s 
resulted in an increase of about 1 6<$ per Mcf to 
residential customers and about 2. 93$ per Mcf to all 
other classes, effective December 1, 1980." 

A summary of rate increases approved for Consumers' 
residential customers during the fiscal year appears as 
part of Appendix 'A' to this Report. More detailed 
information, and rates for other classes of customers, 
are contained in the Company's rate schedules. 

Inter-City Gas Corporation 

Inter-City is a Manitoba company whose subsidiaries 
distribute gas in certain areas in Manitoba and which 
distributes gas in Minnesota and in a relatively small 
area of northwestern Ontario in and west of Fort Frances. 

An interim rate increase of 2$ per Mcf was granted 
to the Company's Ontario Division effective May 1, 1980, 
in recognition of a revenue deficiency. 

Phase I of Inter-City's main application was heard 
in early March 1981. The main application remained 
pending at the end of the fiscal year. 



- 7 - 

Natural Resource Gas Limited 

Natural Resource Gas (formerly The Medina Natural 
Gas Company Limited) is a small gas distributor serving 
Alymer and surrounding communities. It purchases gas 
from Union Gas Limited and local producers. 

During the fiscal year the rate increases granted to 
Natural Resource Gas resulted from gas cost increases and 
the Federal natural gas excise tax. 

Northern and Central Gas Corporation Limited 

Northern and Central distributes gas in parts of 
northern and southeastern Ontario. 

Following a Phase II decision, revised rate 
schedules effective September 1, 1980, were approved for 
Northern and Central. The Phase II decision resulted in 
rate adjustments to all classes, ranging from an increase 
of 19<f per Mcf for residential customers to a decrease of 
16.3$ per Mcf for industrial and commercial interruptible 
customers . 

Among other matters, the Board held that there were 
no unusual or special circumstances which would warrant 
the awarding of costs to any of the Phase II 
intervenors. As a result, counsel for the municipal 



- 8 - 



intervenors petitioned the Lieutenant Governor in Council 
for an award of costs. The petition was pending at the 
end of the fiscal year. 

Northern and Central filed a new main application in 
October 1980. The matter will be heard early in the new 
fiscal year. 

A summary of the rate increases approved for 
Northern and Central's residential customers during the 
fiscal year appears as part of Appendix 'A' to this 
Report. More detailed information, and rates for other 
classes of customers, are contained in the Company's rate 
schedules . 

Tecumseh Gas Storage Limited 

Tecumseh Gas is operated by Consumers' Gas and is 
owned jointly by Consumers' and Imperial Oil Limited. It 
does not distribute gas but operates underground gas 
storage facilities in Lambton County, Ontario. 

The first main rate application for Tecumseh was 
heard during the fiscal year. The Board's decision will 
be rendered in the new fiscal year. 

Union Gas Limited 

Union distributes gas in most of southwestern 
Ontario. 



- 9 - 



In its Phase I decision early in the fiscal year the 
Board approved for Union a rate of return of 10.79 per- 
cent and found a revenue deficiency of $17.7 million (of 
which $14.1 million was already being recovered effective 
January 1, 1980). Rate increases to residential, general 
service and transportation customers were granted 
effective April 23, 1980, to permit Union to recover the 
balance of the revenue deficiency. 

L The Board rendered its Phase II decision in December 
1980. At the same time Union's rate base was increased 
by some $6 million due to reconsideration of part of the 
Board's Phase I decision. New rates became effective at 
the beginning of the new fiscal year. 

During the fiscal year the Board also issued interim 
orders approving short-term storage rates applicable to 
storage for Consumers' Gas, and transportation rates for 
the Morpeth Line in the Township of Howard, County of 
Kent. 

In June 1980 Union applied for increased rates to 
pass on to its customers the costs of synthetic natural 
gas purchased from Petrosar Limited, a refining and 
petrochemical company located in Sarnia. The hearing 
commenced in November 1980 and argument was heard on a 
motion by the Industrial Gas Users Association for 
production of certain particulars and documents. The 



- 10 - 

Board granted the application in part, and early in 
December heard argument on a further motion by IGUA that 
the Board disqualify itself from hearing Union's 
application because of apprehended bias. This motion was 
dismissed by the Board on December 16, 1980. The Board's 
decision was appealed by IGUA to the Divisional Court, 
and on April 1, 1981, the Court upheld the Board. The 
hearing of Union's application is expected to take place 
in the coming fiscal year.^} 

A new main application was filed by Union in January 
1981. It will be heard early in the new fiscal year. 

A summary of rate increases approved for Union's 
residential customers during the fiscal year appears as 
part of Appendix 'A' to this Report. More detailed 
information, and rates for other classes of customers, 
are contained in the Company's rate schedules." 

Wellandport Gas Limited 

Wellandport Gas is a small gas distributor serving 
customers in the Townships of West Lincoln and Wainfleet, 
Regional Municipality of Niagara. It produces most of 
its own gas but also purchases gas from Union Gas 
Limited. 



- 11 - 

During the fiscal year the Board issued an interim 
order increasing Wellandport 's rates by about $1.20 per 
Mcf effective January 1, 1981, to all customers due to 
increased operating and gas purchase costs . 

Pipeline Construction 

In August 1980 the Board granted Union leave to 
construct a 16-kilometer gas transmission line within the 
Township of Tucker smith , County of Huron. 

In September 1980 Consumers 1 was granted leave to 
construct a 25-kilometer transmission line from the 
Company's existing facilities south of the Town of 
Campbellford to an industrial plant to the east of the 
Village of Havelock. 

The other leave order granted during the fiscal year 
was to Northern and Central to construct a 22-kilometer 
transmission line to loop its existing transmission line 
from the TransCanada system to the City of Timmins. 

Each leave order granted by the Board was subject to 
certain conditions relating primarily to construction and 
land restoration methods. 

Near the end of the fiscal year the Board of its own 
motion heard and determined whether it should vary 
earlier leave to construct orders granted to Union Gas 
with respect co four looping sections of Union's existing 



- 12 - 

Dawn-Trafalgar transmission system. The motion was 
granted and the orders in question varied by adding a 
clause to the effect that, before any future orders are 
issued permitting construction of the four sections to 
commence, the Board would give consideration to 
environmental and related matters pertinent to the 
construction. 

Pipeline Exemptions 

Under section 38 of The Ontario Energy Board Act the 
Board may in special circumstances exempt a person from 
making formal application and obtaining from the Board an 
order for leave to construct a transmission line. Under 
that section two requests were dealt with during the 
fiscal year: 

In May 1980 Union Gas was granted an exemption with 
respect to a 7-kilometer portion of the Dominion Line in 
the Township of Burford, County of Brant. 

Later in the fiscal year Northern and Central was 
granted an exemption in connection with a 15-kilometer 
line from the City of Sudbury to the Town of Rayside 
Balfour. 

Both exemption orders were subject to environmental 
and other conditions. 



- 13 - 

Gas Storage 

During the fiscal year the Board approved the 
parties, term and storage of a proposed short-term gas 
storage agreement whereby Union would store gas for 
Consumers'. The Board also approved proposed amendments 
to the period and storage of an agreement whereby Union 
was providing storage service to The Public Utilities 
Commission of the City of Kingston. 

Under section 21 of The Ontario Energy Board Act the 
Board has jurisdiction to determine compensation payable 
by a storage company to the owners of oil and gas and 
storage rights in a designated gas storage area. The 
first such application was filed with the Board in 1977, 
in respect of the Bentpath Pool in the Township of Dawn. 
Union Gas Limited is the storage company using the 
Bentpath Pool. A second application in respect of the 
Pool was filed in 1980, while the first was still in the 
pre-hearing stage. During the fiscal year the Board 
consolidated the two applications, dealt with further 
procedural matters and dismissed a motion by Union 
requesting the Board to state a case to the Divisional 
Court regarding the interpretation of The Expropriations 
Act. Early in the new fiscal year the Board intends to 
fix a date for the compensation hearing. 



- 14 - 

Certificates and Franchises 

Under the provisions of The Municipal Franchises 
Act, there are two requirements which must be met by a 
gas utility before gas can be supplied to the residents 
of a municipality. The first of these is obtaining a 
certificate of public convenience and necessity, which is 
issued by the Board after a public hearing to determine 
that the project is feasible and that the applicant has 
the expertise and resources to assure reliable gas supply 
and service. The second requirement is Board approval of 
the proposed franchise agreement between the company and 
the municipality to be served, also granted after a 
public hearing in which the Board must satisfy itself 
that the terms and conditions of the agreement are fair 
and reasonable to both parties, and are therefore in the 
public interest. 

During the fiscal year the Board granted eight such 
certificates: 

To Consumers' Gas, for part of the City of 
Mississauga and for the Township of Belmont and 
Methuen; and 

to Northern and Central Gas, for the Town of 
Rayside Balfour, the Village of Burk's Falls 
and the Townships of Caldwell, Ignace, Machar 
and Machin. 



- 15 - 

The Board in the fiscal year also approved 27 
franchise agreements, as listed below. In the case of 
franchises for counties and regional municipalities, the 
Board approved terms and conditions which differ from 
those approved for other municipalities in that the 
former merely grant the right to place distribution pipes 
in highways under the jurisdiction of the county or 
regional municipality and do not grant the right to sell 
gas . 

Consumers ' Gas 

*Township of Belmont and Methuen 

Township of Essa 
*Village of Havelock 

Town of Kemptville 
*County of Lanark 
*United Counties of Leeds and Grenville 

City of Mississauga 

Township of Nottawasaga 

Town of Orangeville 

Township of Osgoode 

City of Peterborough 
*County of Peterborough 
*United Counties of Prescott and Russell 

Township of Russell 

Municipalities franchised for the first time 



- 16 - 

*County of Simcoe 
Township of Vespra 
Township of Wainfleet 



With respect to the City of Peterborough, in a 
decision dated June 26, 1979, the Board had prescribed 
certain terms and conditions upon which the franchise 
would be renewed. Peterborough appealed that decision to 
the Divisional Court, and on April 22, 1980, the Court 
dismissed the appeal, stating that the statute did not 
require that the terms and conditions decided upon by the 
Board be in the expiring agreement or in a new agreement, 
or that they be acceptable to either or both of the 
parties . 

With respect to Mississauga, Council of the City 
hadgiven two readings to identical by-laws granting 
distribution franchises for a certain area of Mississauga 
to both Union and Consumers'. Both distributors then 
applied to the Board for approval of the franchise terms 
and conditions. The Board heard the matters together and 
in its decision of July 17, 1980, ruled that the public 
interest would be better served by Consumers' being 
franchised in the area in question. (Consumers' was 
already franchised in the rest of Mississauga). 






municipalities franchised for the first time 



- 17 - 

Prior to the hearing, the Board had stated a case to 
the Divisional Court, and on May 13, 1980, the Court 
ruled that Consumers' did not hold an existing franchise 
in the area in question, and that the Board had 
jurisdiction to choose between the distributors. 

Northern and Central Gas 

Village of Brighton 
*Village of Burk's Falls 
*Township of Caldwell 

Town of Englehart 
*Township of Machar 
*Town of Rayside Balfour 
*Regional Municipality of Sudbury 

Town of Valley East 

Union Gas 

City of Oakville 
Township of Dawn. 

In the case of Dawn Township, the Board prescribed 
the terms and conditions for renewal of the franchise. 
These were the same as had been prescribed for the 
Township of Moore in 1978. 

* municipalities franchised for the first time 



- 18 - 

Accounting Orders 

In the Board's Annual Report for fiscal 1979-80 it 
was noted that Union's accounting orders permitting the 
deferral of certain costs relating to the purchase of 
synthetic natural gas from Petrosar Limited were extended 
from time to time. 

In April 1980 Union entered into an agreement to 
sell the gas to Transcontinental Gas Pipe Line Corpora- 
tion of Houston, Texas. Consequently, further extensions 
of the accounting order were granted from time to time, 
the most recent having been issued on November 7, 1980. 

Union obtained all requisite Canadian and U.S. 
approvals to export the gas and commenced delivery 
thereof on December 24, 1980. 

ADVISORY HEARINGS 

In addition to its regulatory functions, the Board 
has also during the fiscal year carried out its role as 
advisor to the Minister of Energy and to the Minister of 
Natural Resources, as follows: 

Ontario Hydro 

In May 1980, under section 37(a) of The Ontario 
Energy Board Act, the Minister of Energy forwarded to the 
Chairman of the Board a letter of reference requesting 



- 19 - 

the Board to investigate, examine and report on a 
proposal by Ontario Hydro to increase its rates 
effective January 1, 1981. _J 

The Board was asked in particular to examine and 
report on the manner in which Ontario Hydro had allocated 
bulk power costs and the extent to which it has kept its 
proposed bulk power cost increase as low as possible, 
consistent with the maintenance of its financial 
soundness, its ability to attract capital at favourable 
rates, and the reliability and quality of service to its 
customers. Ontario Hydro's proposal to the Minister of 
Energy forecasted a 1981 revenue requirement of $2,617 
million, which would require an average bulk power rate 
increase of 9.4 percent. 

Y_ The hearing was held in July and the Board made its 
report on August 27, 1980, recommending acceptance of the 
rates proposed by Ontario Hydro. The report also 
contained several recommendations. 

Tecumseh Gas Storage Limited 

In January 1981 the Company applied to the Minister 
of Natural Resources for permits to drill six wells in 
the Kimball-Colinville and Corunna designated gas storage 
areas in the Township of Moore. Upon reference from the 
Minister of Natural Resources under section 23 of The 
Ontario Energy Board Act, the Board held a hearing and 



- 20 - 

reported to the Minister on March 2, 1981, recommending 
the granting of the permits requested. 

OTHER MATTERS 

Hearing Procedures 

With the increasing complexity of hearings combined 
with the objective of streamlining the regulatory 
process, the Board has over the past two years addressed 
itself on an ongoing basis to 

(a) the nature and scope of the material to be pre- 
filed in support of applications; 

(b) improving the quality of the hearing process; 
and 

(c) the decision-writing process. 

Further to comments under Natural Gas Rates (p. 3) 
and with reference to (a) above, standard lists of 
information required by the Board relative to rate and 
pipeline construction applications have been provided to 
each gas utility concerned, with the understanding that 
no case can be considered ready for hearing until the 
items listed have been filed and examined by the Board's 
staff. The policy is aimed at reducing the need for 
Board interrogatories (written questions to obtain clari- 
fication of portions of the applicant's pre-filed 
material) and, as part of that policy, applicants have 



- 21 - 

also been advised that the Board will not normally set a 
date for commencement of a hearing until its interroga- 
tories, where these are necessary, have been satisfac- 
torily answered. By this means it is expected that the 
time taken up at hearings will be considerably reduced. 

With reference to (b) above, the practice of holding 
technical and procedural pre-hearing conferences has been 
firmly established, the former to identify and clarify 
the main issues in a given case, and the latter to 
arrange a basic schedule for the hearing and to deal with 
questions of procedure. 

Members presiding at hearings are continuing to 
discourage repetition in cross-examination without in any 
way denying parties the right to make their representa- 
tions. This, combined with the experience and coopera- 
tion of parties appearing before the Board, has had the 
effect of improving the efficiency of the hearing 
process . 

Where it has been necessary to provide for written 
argument at the conclusion of a hearing, the Board has 
always recognized the importance of allowing sufficient 
time for preparation and has also acknowledged, where 
possible, other commitments which parties to the 
proceeding might have. More recently, however, a general 
policy of shortening the time allowed has been adopted 



- 22 - 

and has not produced any deterioration in either the 
quality or scope of argument filed. 

The Board has also been reviewing the style and 
format of its written reasons for decisions. 

Ontario Pipeline Coordination Committee 

When Interprovincial Pipelines Limited applied to 
the National Energy Board in 1973 for leave to construct 
a crude oil pipeline from Sarnia to Montreal, an informal 
Committee was created within the Provincial Government so 
that a co-ordinated Provincial response with respect to 
specific environmental and agricultural concerns and 
other technical issues could be presented to the National 
Energy Board ("NEB") and the applicant during the 
construction process. 

The Committee was reactivated in 1979 when the NEB 
requested Provincial involvement in a Windsor-Sarnia 
pipeline case under the jurisdiction of the NEB. The 
Committee is now involved with all pipeline construction 
in the Province, both under the jurisdiction of the NEB 
and this Board. 

Because of the involvement of Board staff in 
pipeline construction matters under Board jurisdiction, 



- 23 - 

the Committee* is chaired by the Board's Special Projects 
Officer and is headquartered at its offices. Its 
location there, however, does not imply any direct 
relationship between the activities and recommendations 
of the Committee and the functions and obligations of 
Board members when dealing with applications. The 
Committee's involvement in the hearing process is an 
advisory one to applicants with respect to their 
pre-filed material, to the Board during and as part of 
the hearing process, and to the affected parties. The 
Committee also monitors pipeline construction. 

The work of the Committee has been evident during 
the past year in connection with applications by 
Consumers' Gas, Northern and Central and Union Gas. The 
Committee has assisted the Board in determining the 
conditions which the applicants were to meet in the 
construction of the lines applied for. 

In addition, during the fiscal year the Committee 
assisted the Ontario Ministry of Energy in the 
preparation of an intervention before the NEB in 
connection with an application by TransCanada PipeLines; 
has worked with TransCanada in route evaluation and 



* The Committee is at present comprised of representa- 
tives from the Ministries of Agriculture & Food, 
Environment, Consumer & Commercial Relations and 
Natural Resources. Input is also provided on request 
by the Ministries of Culture & Recreation, Energy and 
Housing. 



- 24 - 

related environmental considerations regarding a number 
of planned pipelines in Ontario; and has monitored 
construction of one TransCanada project. 

Pipeline Construction Guidelines 

The Guidelines* grew out of the work of the Ontario 
Pipeline Coordination Committee, and these set out in 
detail a variety of conditions which parties applying for 
approval to build oil or gas pipelines may be expected to 
meet in connection with such projects. 

The conditions fall generally into three cate- 
gories: pre-hearing procedures concerning the 
appropriate material for examination by the Board and 
the interested parties to be notified of the 
application; the conditions to be complied with during 
actual construction; and restoration procedures when 
construction has been completed. In rendering its 
decisions on pipeline applications the Board may require 
an applicant to meet any or all of the conditions 
detailed in the Guidelines, or may impose other 
conditions as appropriate. 

The Guidelines were first published by the Board in 
1976, but during the past year they have undergone 



* full title: Agricultural, Environmental and Resource 
Guidelines for the Construction and Operation of 
Pipelines in the Province of Ontario. 



- 25 - 

extensive revision and expansion by the Committee, and a 
new edition may be published in 1981. 

COST OF ADMINISTRATION 

The Board's total expenditures for the fiscal year 
are estimated at $1,539,800 of which $266,254 was 
recovered from applicants by way of fees and costs and 
paid into the Consolidated Revenue Fund. 



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Appendix B 



Summary of Proceedings Before The Board 

A classification of the proceedings completed before 
the Board during the fiscal year ended March 31, 1981 is 
as follows: 



Number of 
Hearings 

Under The Ontario Energy Board Act 



Rates and other charges for gas 34 

Gas Storage 2 

Leave to Construct Pipelines 3 

References by Ministers 2 

Miscellaneous 5 

Under The Municipal Franchises Act 

Certificates 8 

Franchises 2_7 

81 

The above proceedings have necessitated a total of 
97 hearing days which were spent in the following manner 

Days 

Rates Cases 57 

Ontario Hydro's Bulk Power Rates for 1981 . . 17 
All Others 23^ 

97 



Appendix C 



BOARD PERSONNEL 
As of March 31, 1981, the Board consisted of eight 
full-time Members and one Part-time Member, namely: 



R. H. Clendining, P. Eng. 

I. C. MacNabb, P. Eng. 

S. J. Wychowanec, Q.C. 

H. R. Chatterson, B. Comm. 

J. C. Butler, P. Eng. 

J. R. Dunn, P. Eng. 

D. H. Thornton, Q.C. 

D. M. Treadgold, Q.C. 

R. R. Perdue 



Chairman 

Vice Chairman 

Vice Chairman 

Member 

Member 

Member 

Member 

Member 

Member (Part-time) 



During the fiscal year under review two Members left 
the Board and two new Members were appointed by the 
Lieutenant Governor in Concil. Mr. I. Bruce MacOdrum 
resigned as a Board Member on April 9 to accept an 
Executive Director position at the Ontario Ministry of 
Energy. The appointment of Dr. Leonard Waverman as a 
Part-time Member expired on May 2, 1980. Mr. Donald H. 
Thornton, Q.C, was appointed a Member effective March 1, 
1981, and Mr. Richard R. Perdue was appointed a Part-time 
Member from January 1981. 

In addition, as of March 31, 1981, the staff of the 
Ontario Energy Board totalled 22 persons including senior 
staff as follows: 



Director of Operations 

Board Secretary 

Energy Returns Officer and 

Manager, Financial Analysis 

Board Solicitor 

Special Projects Officer 

Manager, Engineering 



D. D. McLean 
S.A.C. Thomas 

O. J. Cook 

L. Graholm 

D. R. Cochran 

C. J. Mackie 



The Board's offices are located on the 9th Floor, 
14 Carlton Street, Toronto, Ontario M5B 1J2. 



068820040 



JUN 3 1992